Capability Gap Matrix

The Capability Gap Matrix is a 2x2 matrix used to identify and prioritize areas of improvement for a business. It helps to identify gaps between the current state of the business and its desired future state.

At a very high level, the Capability Gap Matrix is used in the context of business, marketing, finance.

Capability Gap Matrix quadrant descriptions, including examples
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What is the Capability Gap Matrix?

A visual explanation is shown in the image above. The Capability Gap Matrix can be described as a matrix with the following quadrants:

  1. Current Capabilities: Skills, processes, and resources that the business currently has and is using, e.g. existing customer database
  2. Desired Capabilities: Skills, processes, and resources that the business would like to have and use in the future, e.g. customer loyalty program
  3. Gaps: Skills, processes, and resources that the business needs to acquire or develop in order to reach its desired state, e.g. new customer acquisition strategy
  4. Priorities: Skills, processes, and resources that the business should focus on first in order to reach its desired state, e.g. developing a customer loyalty program

What is the purpose of the Capability Gap Matrix?

The Capability Gap Matrix is a 2x2 matrix used to identify and prioritize areas of improvement for a business. It helps to identify gaps between the current state of the business and its desired future state. The matrix is divided into four quadrants, each representing a different level of capability.

The top-left quadrant represents the “Current Capabilities” of the business. This quadrant contains the skills, processes, and resources that the business currently has and is using. The top-right quadrant represents the “Desired Capabilities” of the business. This quadrant contains the skills, processes, and resources that the business would like to have and use in the future.

The bottom-left quadrant represents the “Gaps” between the current and desired capabilities. This quadrant contains the skills, processes, and resources that the business needs to acquire or develop in order to reach its desired state. The bottom-right quadrant represents the “Priorities” for the business. This quadrant contains the skills, processes, and resources that the business should focus on first in order to reach its desired state.


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What templates are related to Capability Gap Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Capability Gap Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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